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What Will 2016 Bring For Live And On Demand Video?

As we have discussed over the last few months, 2015 has been a relatively successful year in the world of online video. According to Limelight’s “The State of Online Video”, 83% of consumers now watch video-on-demand. This figure alone helps to show us that SVOD and OTT services are very much here to stay.
As 2015 reaches its end we are going to take a look at some of the trends of the year, which online video producers encountered. We are also going to have a look at what can be expected to happen in 2016.

The world of SVOD and 20150206200604-online-video-streaming-tvOTT in 2015

In a mostly grea
t year for online video producers, 2015 was a time of several positive trends in the industry, and one which was definitely less than positive.

  • SVOD and OTT entered the mainstream

In the old year, we finally witnessed the emergence of SVOD and OTT into a mainstream viewing habit. Major names like Hulu and Netflix dominated the arena, with Netflix alone now having 69 million subscribers across the globe. Despite this domination, many new OTT services have also emerged, to further strengthen the foundations of the industry going forward.

  • Live streaming apps were consolidated

Both Meerkat and Periscope are now consolidated as apps in the world of live streaming. They are helping to improve the viewing experience as well as widening the creative field for professionals such as sports journalists.

  • Technical innovation improved live video

The major online sports providers have used improved technical innovation to bring higher quality live video products to the market, and extend the geographical reach of these products. Use of the live streaming apps has proved to be especially beneficial in this field.

  • Ad blocking began to cause major problems

2015 was the year when ad blocking really took hold as a major concern for online video producers who rely on the advertising revenue stream to survive. We could all tell how much of an issue this had become when it featured on South Park; this only happens when a topic is really big. It is estimated that ad blocking resulted in losses of around $22 million for OTT producers.

What will happen in online video in 2016?

Obviously, no-one can say exactly what is going to happen in the future, but we have a feeling our predictions will be pretty accurate, based on what has been happening in recent months.

  • Cord cutting will continue to increase

The millennial generation is set to lead the growth of cord cutting, as more and more revenue is generated by online TV content. Traditional TV providers will see their profits fall if they do not adjust, and develop high quality OTT content.

  • Viewers will have an appetite for premium video content

During 2015, sports content providers improved the quality of content for pay per view events, using technological advancements. These improvements are set to be seen in more unusual areas such as corporate and worship content.

  • Ad-blocking will revolutionise revenue strategies

Ad-blocking is not going away, so producers need to find another way of optimising revenue. It is likely that this will be by way of adopting practices such as offering specifically priced ad free viewing packages.

  • 4K will get nearer to the mainstream

According to Akamai’s “State of the Internet Report”, 15% of the world is now 4K ready. This figure is consistently growing, as providers like Netflix look to bump up the amount of 4K content they provide.

We don’t think there is any doubt that 2016 is going to be a year when the appetite for online video content continues to grow, and producers work to overcome the hurdle of ad-blocking to secure their success. We hope that 2016 proves to be a good year for you too.

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